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  3. tempo company's fixed budget (based on sales of 10

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals...

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Accounting

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (10,000 units $204 per unit) $ 2,040,000
Cost of goods sold
Direct materials $ 240,000
Direct labor 420,000
Production supplies 280,000
Plant manager salary 40,000 980,000
Gross profit 1,060,000
Selling expenses
Sales commissions 80,000
Packaging 140,000
Advertising 100,000 320,000
Administrative expenses
Administrative salaries 90,000
Depreciationoffice equip. 60,000
Insurance 30,000
Office rent 40,000 220,000
Income from operations $ 520,000

(1) Compute the total variable cost per unit. (The correct answer for this one is $116) (2) Compute the total fixed costs. (The correct answer for this one is $360,000) (3) Compute the income from operations for sales volume of 8,000 units. (?) (4) Compute the income from operations for sales volume of 12,000 units. (?)

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